Crypto analyst PlanB is popular in the cryptocurrency space for coming up with a bitcoin price-predicting model that uses the coin’s scarcity, the stock-to-flow model. The model assumes that the price of bitcoin increases significantly after each halving event due to BTC’s limited supply.
In a couple of tweets on July 7, PlanB revealed what motivated him to buy the flagship cryptocurrency five or so years ago.
4 Things That Compelled PlanB To Buy BTC
PlanB first purchased bitcoin between 2015 and 2016 — even before creating the stock-to-flow model. The said model has undergone a series of updates, with the latest iteration calling for $288,000 per BTC by 2024.
In a tweet on Wednesday, the pseudonymous analyst listed four key factors that led to him investing in the cryptocurrency. Firstly, PlanB pointed out that according to data made available by Credit Suisses, there are currently 46 million millionaires in the world. There’s still a chance of becoming one of the millionaires if you get into bitcoin which has a maximum supply of 21 million.
Secondly, he needed something else that can be used in space or Mars as neither gold nor fiat currency can be used in these places. PlanB then notes that with bitcoin, there can never be third party seizure. In other words, no one can block a transaction or even freeze an account.
Lastly, the analyst emphasizes the fact that BTC is a digital sound-money standard in a world where negative interest rates have become a norm. Over the years, central banks have been slashing interest rates left, right, and center. This has resulted in a decline in the value of customers’ savings held in the banks — both nominally and in real terms.
Why I bought #bitcoin in 2015-2016 (before the model):
— PlanB
– 46M millionaires in the world, only 21M BTC
– can't use gold or $ in space or Mars, need something else
– nobody can freeze account or block transactions
– 0% interest rate is better than negative interest rate pic.twitter.com/JXb98WDLv6(@100trillionUSD) July 7, 2020
Unfortunately, most people are still ignorant about the failings of the traditional finance system and the potential benefits that BTC offers. In a separate tweet, PlanB stated:
“It is funny isn’t it? In The Netherlands people have about $400B on their bank savings accounts, earning 0% interest (above $1M interest rate is negative). This $400B could be put in bitcoin and put to work to earn at least 6% interest, $24B/yr. Most people in NL are asleep ..yet.”
The Bitcoin Solution
Bitcoin maximalists might agree with PlanB. Most people that were drawn to the benchmark cryptocurrency in its earliest days were presumably inspired by its distance from government control. With the trillion-dollar bailouts that have been witnessed in recent months amid coronavirus, most people are anticipating rampant inflation in the coming years.
The opposite is true for bitcoin. The king crypto is the ultimate hard money — money that can’t be printed ad infinitum. Moreover, bitcoin underwent halving almost two months ago, reducing the quantity of bitcoin’s mined every day. As a result, its annual inflation rate is now lower than that of gold.
It goes without saying that bitcoin is the soundest money in the market at the moment.
